Customer allowances and returns Assume the following data for Casper Company before its year-end adjustments: Unadjusted Balances Debit Credit Sales $1,750,000 Cost of Merchandise Sold $1,000,000 Estimated Returns Inventory 600 Customer Refunds Payable 400 Estimated cost of merchandise that will be $8,000 returned in the next year Estimated percent of refunds for current year 0.6% sales a. Journalize the adjusting entry for the estimated customer allowances. b. Journalize the adjusting entry for the estimated customer returns.
Customer allowances and returns Assume the following data for Casper Company before its year-end adjustments: Unadjusted Balances Debit Credit Sales $1,750,000 Cost of Merchandise Sold $1,000,000 Estimated Returns Inventory 600 Customer Refunds Payable 400 Estimated cost of merchandise that will be $8,000 returned in the next year Estimated percent of refunds for current year 0.6% sales a. Journalize the adjusting entry for the estimated customer allowances. b. Journalize the adjusting entry for the estimated customer returns.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter14: Adjustments For A Merchandising Business
Section: Chapter Questions
Problem 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...
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